The Analytical Overview of the Main Currency Pairs on 2017.09.07

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.19067

Open: 1.19156

% chg. over the last day: +0.10

Day's range: 1.19134 – 1.19442

52 wk range: 1.0341 – 1.2069

At the moment, the technical pattern on EUR/USD is ambiguous. Today the attention is focused on the ECB meeting. Investors are waiting for the Central Bank Chairman Mario Draghi's statement and comments regarding plans to reduce the economic stimulus program and the significant euro strengthening since the beginning of this year. The key levels of support and resistance are 1.19000 and 1.19500 respectively. We recommend opening positions from these marks.

The news background on 2017.09.07:

- A decision on the interest rate of the ECB at 14:45 (GMT+3:00);

- The ECB press conference at 15:30 (GMT+3:00);

- Statistics on the labor market in the US at 15:30 (GMT+3:00).

The price is above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.

Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which signals the purchase of EUR/USD.

Trading recommendations

Support levels: 1.19000, 1.18400, 1.17800

Resistance levels: 1.19500, 1.20000, 1.20500

Today we recommend reducing risks when opening positions.

If the price fixes above the resistance level of 1.19500, it is necessary to consider buying EUR/USD. The movement is tending to 1.20000-1.20500.

Alternative option. If the EUR/USD quotes overcome the round level of 1.19000, we recommend looking for entry points to the market to open short positions. The target level of movement is 1.18400-1.17800.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.30286

Open: 1.30416

% chg. over the last day: +0.10

Day's range: 1.30321 – 1.30596

52 wk range: 1.1450 – 1.3447

Yesterday, the GBP/USD currency pair held the local resistance of 1.30750, which caused a correction movement. The US dollar was supported by positive statistics on business activity in the non-production sector of the country. At the moment, the technical pattern is ambiguous. In the near future, we do not exclude a technical correction.

We recommend paying attention to the news line from the USA.

Indicators do not send accurate signals. The price is above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram has begun to decline and has fixed below the signal line, which indicates a correction of the GBP/USD currency pair.

Stochastic Oscillator is located in the neutral zone, the %K line has crossed the %D line. There are currently no signals.

Trading recommendations

Support levels: 1.30200, 1.29750

Resistance levels: 1.30750

If the price fixes below the local support of 1.30200, a correction may develop on the GBP/USD currency pair. The immediate goal for profit-taking is a "mirror" support level of 1.29750.

Alternative option. If the price overcomes the 1.30750 mark, we recommend considering buying GBP/USD. The movement is tending to 1.31000-1.31250.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.23707

Open: 1.22202

% chg. over the last day: -1.11

Day's range: 1.22087 – 1.22416

52 wk range: 1.2414 – 1.3795

Yesterday, the Bank of Canada unexpectedly tightened monetary policy. The regulator raised the key interest rate by 25 basis points to 1.00%, which caused a significant demand for the Canadian dollar. The fall in the USD/CAD quotations exceeded 200 points. The currency has reached a round level of 1.22000. The Central Bank noted positive changes in the economy against the backdrop of strong consumer expenditures and labor market stability. At the moment, USD/CAD is consolidating.

Economic reports from Canada on 2017.09.07:

- Building permits at 15:30 (GMT+3:00);

- Ivey's business activity index at 15:30 (GMT+3:00).

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator has reached the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.22000, 1.21500

Resistance levels: 1.22450, 1.23000

In the near future, we do not exclude the technical correction of the USD/CAD currency pair. If the price fixes above the local resistance of 1.22450, it is necessary to consider purchases. The potential of the movement is 1.23000-1.23250.

Alternative option. If the statistics from Canada is positive, the downward trend on USD/CAD may continue. The movement is tending to the local support of 1.21500.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 108.793

Open: 109.218

% chg. over the last day: +0.32

Day's range: 108.884 – 109.263

52 wk range: 99.53 – 118.67

During yesterday's trading, the USD/JPY currency pair moved away from local lows. Support for the US dollar was provided by optimistic data on business activity in the non-production sector of the country and recovery of the US government bonds yield. The 108.850 mark is already a "mirror" support. The local resistance is the level of 109.250.

There is no important statistics on the economy of Japan today.

The price is close to 50 MA, which at the moment is a fairly strong dynamic support.

The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.

Stochastic Oscillator has fixed in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 108.850, 108.500

Resistance levels: 109.250, 109.800

We expect further growth of USD/JPY. If the price fixes above the local resistance of 109.250, we recommend considering buying. The movement is tending to 109.850.

Alternative option. If the USD/JPY rate overcomes the "mirror" support level of 108.850, it is necessary to search for entry points to open short positions. The closest target for fixing profits is 108.500.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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